House prices fell by 0.1% in February

According to mortgage provider Nationwide, house prices fell 0.1% in February for the first time in five months.

Average house prices fell from £188,446 in January to £187,964 in February, according to figures by the UK’s second biggest mortgage lender.

Annual price growth slowed for the sixth month in a row to 5.7%, marking the lowest since September 2013.

Homebuyers can now take advantage of falling property prices, which is due to low interest rates and the UK’s improving economic outlook.

According to the Bank of England, the number of mortgage approvals increased slightly in January, with 60,786 of home loan applications being approved, but this is still below the average of the previous six months.

Nationwide’s chief economist, Robert Gardner said: “Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions.”

Nationwide claims the housing market is cooling down because of the long-term decline in 25-34-year-olds owning a property and fewer first-time buyers entering the market.

In 2014, this age group owning a home fell from 59% in 2004 to 36%.

Data published by the Land Registry showed that average property prices are varied across the UK.

In London, the average house price was £458,283 in comparison to £97,974 in the North East of England in January.

Source: BBC News

Naomi Havergal
Wednesday 4th March 2015

Category: Mortgages

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